MakeMyTrip Limited on Friday said that its investor Naspers Limited and Chinese travel services provider Ctrip have entered into a share exchange agreement.
Under this agreement, Naspers will exchange its entire shareholding in MakeMyTrip for newly issued shares of Ctrip and Ctrip will acquire Naspers’ current shareholding in MakeMyTrip.
Ctrip will invest certain ordinary shares and class B shares of MakeMyTrip in a third-party investment entity.
Following the transaction, Naspers will own 5.6 percent of Ctrip’s outstanding ordinary shares, and Ctrip and the third-party investment entity will own ordinary shares and class B shares of MakeMyTrip.
With this Ctrip will own 49 percent in MakeMyTrip and hold 4 percent of MakeMyTrip’s total voting rights, respectively.
Speaking on this development, Deep Kalra, Chairman and Group CEO of MakeMyTrip, said,
“We are grateful for the unstinting support Naspers has provided us over the last couple of years. We have worked with Ctrip in the past years and are excited to take this partnership to the next level. We will leverage this investment to benefit from the tremendous growth potential in travel and tourism between our two countries.”
The transaction is expected to close as soon as practicable in the second half of 2019 and is subject to customary closing conditions, including the requisite regulatory approvals.
Rajesh Magow, Co-founder and CEO-India of MakeMyTrip, said,
“Today’s announcement provides a major boost for MakeMyTrip and the rapidly growing travel industry in India. This partnership will benefit all our stakeholders including employees, customers and business partners. We look forward to working with the Ctrip team to continue to take our business to the next level.”
Earlier this month, according to filings with Registrar of Companies (RoC) MakeMyTrip said that it had received Rs 103 crore from its Mauritius-based entity.
Commenting on the share swap, James Liang, Co-founder and Executive Chairman of Ctrip said,
“Over the past years we have witnessed the great achievements of MakeMyTrip, and we are confident that MakeMyTrip will extend its success in the future.”
In May 2017, MakeMyTrip, had raised $330 million in fresh funds from existing investors Ctrip.com International Ltd and Naspers Ltd, including a clutch of undisclosed investors to bolster its position in the market.
“MakeMyTrip has transformed travel in India and beyond since 2000. The agreement we have announced today is a significant step in the growth ambitions of both MakeMyTrip and Ctrip and we believe continuing to support them as a shareholder will create additional value for Naspers and our shareholders,” said Bob van Dijk, Naspers CEO.
Apart from its own platform, MakeMyTrip also owns travel brands including goibibo and redbus.
Tarush is driven towards delivering unbiased and accurate reportage while engaging with as many mediums as possible to narrate a fresh perspective. Working for the past few years in the digital space with YourStory, he has covered the Indian technology ecosystem extensively, focusing on new age Fintech companies, while building strong connects within the industry.